Law Commission reports on investment intermediaries: The Law Commission has presented to Parliament its report on the fiduciary duties of investment intermediaries. The paper considers duties of pension trustees and fiduciary duties within the legal framework. It considers whether there is a need for reform in the pension trust investment framework. It ends by considering the recommendations of the Kat Review and duties in the investment chain, before making recommendations for change. Among its key conclusions are:
- that pension trustees can take into account factors other than merely the maximum financial return should be the predominant concern of pension trustees;
- that there should be more clarity on whether financial intermediaries should owe duties to end-investors as well as to their direct clients;
- that, although there are no significant concerns on the role of investment consultants, it seems strange that they do not need authorisation if they provide only generic advice.